The intelligencer. [volume] (Lexington, Mo.) 1887-1891, 1887-06-04
BUSINESS AND THE SURPLUS.
sfFrom the New York Herald

fiFr0m the new lOTk ueiniu.l
So much is written about possible
embarrassment to the business of the
country daring the coming fall and
~winter from the piling up of surplus
revenue III the treasury, that it is use
VI to see what the real situation ls.
will be found that there is no need
alarm between now and the time
joress can act in the matter by re-
icing the taxes.
The balance in the treasury on May
1 was 1874, OOO, 900. This may be in
creased between May l and July l by
$50, OOO, 900 more. making a total OF
S64, OOO, 900. The redeemable bonds
still out amount to S19, $50 900, and
the purchases required by law amount
to 936, OOO, 900, making a total of $685.
75O, 900. Up to the beginning OF the
new fiscal year, therefore, there will
be no treasurysurplus-scarcely work
ing balance.
Congress meets in December. 1t
ought to be able to agree upon an ade-
ouate reduction of the taxes by the LIST
Of February. The surplus revenue for
the next fiscal year threatens to rise to
4l25, 0OO, 900, and is likely to be more.
If congress should repeal all the inter-
nal revenue taxes in a lump this would
still leave a moderate surplus, because
the internal revenue produces gross
about $I17, OO0, 900, and of this $4,500,-
600 is the cost of collection, and about
q. OOO; 900 estimated marshals' and
other expenses. These 81 900 900 of
course come out of the peoples pock-
cts, but are paid to office holders who
would disappear with the repeal of the
internal revenu system.
But by whatever way congress may
conclude to strike off not less than
$40. 000, 900 of taxes, the surplus reve-
nue. will continue to pour into the
treasury after July l, and until surplus
taxes are repealed. 1t is this fact which
causes remark, and in some quarters
alarm about the future. But if there
should be any such contraction of the
currency from this cause as would in
convenience business, the secretary of
the treasury has full discretion to deal
with it in the act of March 8, 1881,
which provides that he''may at any time
apply the surplus money in the treas
ury not otherwise appropriated; or so
much thereof as be may consider prop
err, to the, purchase or redemption of
. Oull01 0D0G0o OOhOSs ~ II ~
purchased or redeemed shall constitute
no part of the sinking fund, but shall
be cancelled"
It lie our belief, however, that he will
not need to exercise this power before
congress has time to cut of the surplus.
The country has now a very abundant
amount of ssmoney" of various kinds
in circulation. An official comparative
statement shows '.coin and currency in
actual clrculatiOn":-
January 1. 1885 ............. 81. 2S5 ,173 OLE
July l, 1885 80. .............. !,2oS 1O6 700
January 1, 1881. 1,3l0,S20,S!4
April ]. 1sS7.........."......" i,Sia' S 6 'a4S
May i, 1901 13olo,oo1,OLS
That is to say, since July l, 1856,
there has been an expansion of the cur
rency. in actual circulation of nearly
$67, 0OO, 900. The redemption of $l9,-
10000 of three per cents, the necessary
provision for the sinking fund, and the
monthly purchases of silver, all pro-
vide for still further expansion.
If, in spite of all this, there should
.oCcpr.that "piling of money in the
Itch Is feared by some, the
NzoEne to paY the